Reasons to Have to Attend Court After a Foreclosure

A foreclosed tenant can sue the new owner to keep his home.

Attending court hearings after a foreclosure can protect the rights of a former homeowner and a renter facing eviction. Foreclosure, the legal method lenders use to gain ownership over real estate when a borrower stops paying on the mortgage, ends with a public auction of the property. A foreclosed homeowner or tenant may need to attend court hearings after the public auction to protect his residence or finances.

Eviction Appeals

Tenants have the right to dispute an eviction after the landlord has been foreclosed on. According to the Protecting Tenants at Foreclosure Act of 2009, a tenant in a foreclosed unit must be notified of the new owner's intent to evict and given 90 days to move, as of 2010. The tenant normally has five days to dispute the eviction in writing after receiving the notice, according to the California Department of Consumer Affairs. A court hearing is then scheduled for the tenant to present her case against the eviction.

Deficiency Judgments

Some lenders pursue former homeowners in court after a foreclosure or short sale to obtain a deficiency judgment. A deficiency judgment is a money judgment in favor of the lender against the borrower for the difference between the owed balance of the mortgage and the amount the home sold for. The former homeowner can attend the court hearing to dispute the judgment and provide a reason, such as a waiver signed by the lender indicating a deficiency judgment will not be sought. Although some states, including California, have laws barring lenders from pursuing a deficiency judgment, some exemptions do apply, according to CNN. If the mortgage used to purchase the home was refinanced and the second lender is foreclosing, the second lender may be able to get a deficiency judgment for all or part of the difference between the loan balance and home sale price.

Illegal Foreclosures

A foreclosed borrower can sue a lender who breaks state or federal laws during the foreclosure process or fails to meet all the legal requirements for a foreclosure as set by the state. Any lender who violates federal or state regulations during a foreclosure may be liable for damages to the homeowner. In some cases, the court may overturn the foreclosure entirely. The former homeowner must file a lawsuit against the lender in court and attend all hearings to prove the lender broke the law during the foreclosure, according to the legal website Nolo.

About the Author

Anna Assad began writing professionally in 1999 and has published several legal articles for various websites. She has an extensive real estate and criminal legal background. She also tutored in English for nearly eight years, attended Buffalo State College for paralegal studies and accounting, and minored in English literature, receiving a Bachelor of Arts.